FTSE 100 watch: Strong miners help Footsie regain ground

on Sep 14, 2016

The UK benchmark index has climbed into positive territory in today’s session, regaining some of the ground lost earlier this week, helped by a surge in commodity shares. In individual movers, Compass Group (LON:CPG) is outperforming the broader London market following a rating upgrade at JPMorgan.

As of 12:42 BST, the Footsie had added 19 points to stand 1.33 percent higher at 1,444.00. The blue-chip index which was under pressure earlier this week amid concerns about a looming rate hike by the US Federal Reserve, has found support in commodity stocks, which have tracked copper prices higher. Glencore (LON:GLEN) is leading the sector higher, having gained 2.77 percent to 181.96p.
“Copper proxy Glencore is top of the FTSE 100 pile this morning thanks to the bottoming out and rebound from $4,600 a tonne over of the last month, seeing the price of the red metal challenge September’s highs just shy of $4,700 and a bugbear two-month trend of falling highs,” Mike van Dulken, head of research at Accendo Markets, said, as quoted by the Guardian. “The latest leg up maintains the 2016 trend of rising lows from the January depths of the global commodity rut, helped yesterday by supportive data from China and in spite of additional US dollar strength that normally serves to hinder.”
In individual risers, Compass’ share price has gained 1.48 percent to 1,446.05p, after analysts at JPMorgan lifted their stance on the company from ‘neutral’ to ‘overweight’. Sharecast quoted the bank as saying that Compass can continue to deliver constant currency earnings per share growth of between six and seven percent driven by 4.5-percent organic growth and around 10 basis points of margin improvement.
**The FTSE 100 was 0.61 percent higher at 6,705.99 points as of 13:03 BST on Wednesday, September 14, 2016.**

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